[-ForexPhantom-] Daily Crossover System

Trading Systems Free Forex Trading Systems
1

Greetings all,

Check out my new system!

DAILY CROSSOVER SYSTEM

Time Frame: Daily Charts
Currencies: ALL
Indicators: 2 moving averages + 1 MACD (Not actually used…read on)
Duration of Average Trade: Days � Weeks

RULES FOR SYSTEM

I will attach the template for my system below.

LONG ENTRY: Blue MA crosses Red MA from underneath - heading upward.
SHORT ENTRY: Blue MA crosses Red MA from overtop - heading downward.
EXIT: Just before or during an opposite MA cross.
S/L: None
T/P: Two possibilities – No T/P � Use a trailing S/L of 100 pips.
No T/P � Wait for the opposite MA signal to appear.
LOT SIZE: Use a very small lot compared to your equity.
I recommend this formula: EQUITY / 100,000.
So 1,000 dollars USD = .01 Lot size.
5,000 dollars USD = .05 Lot Size.
10,000 dollars USD = .1 Lot Size.
** This is conservative, but trading the daily charts entails more drawdown and big swings. **

GENERAL DISCUSSION

This system is designed for the busy person in mind. A minimal amount of time is required in trading this system.

This is not a high-volume trading system. You will not be placing dozens of orders per day. Instead, we are waiting for strong signals that occur less frequently.

Most trades will be held for days, if not weeks.
Profit potential per trade appears to be around 100 � 1500 pips.
Expect to average anywhere from 1,000 � 4,000 pips / month with each currency you trade.
Obviously, you will have some losers, so this is only the theory.

This system is trend based and is designed to be traded on the DAILY charts only.
By trading with the daily trend, we are waiting for strong trends to appear. It is unusual for a daily trend to reverse itself � at least not quickly. By then you will have locked in some pips.

I will be demo testing this account thoroughly. My starting balance will be 1,000 USD and my beginning lot size will be .01.
My goal is to grow my account substantially from month-to-month and document my gains and losses thoroughly.

Thanks,

-ForexPhantom-

daily 1-4 system.jpg700×525 45.2 KB

daily crossover system.zip (629 Bytes)

2 Likes
2

Hi Phantom,

Looks promising, but… :slight_smile:
Seems like there is a “but” everytime.
So look for example at the first trade (the 800 pips one). What makes you think that you would have jumped in at the start of the big downward candle? Also what makes you think that you would have exited exactly at the bottom?

Yeah that makes a good trade, but that looks like 250 pips to me. According to the strategy, one would enter at the open of 11.02, and exit at the close of 19.02. Why? Simply because it is when we have the crosses. I didn’t analyze the rest of the trades on your screenshot, but I am sure the same applies.

Later edit: The second trade (the 500 pips one) is actually a loss. The entry would be at the close of 19.02 (1.4294) and the exit would be at the close of 25.02 (1.4211). Yeah, at some point the trade will be 357 pips in profit, but would you exit at that point? Also the trade will be areound 140 pips in a loss. Can your mental S/L handle that? What about the 100 pips trailing stop? I am not convinced that is enough.

Also, try to scroll your chart back, and you will see that the price sometimes ranges badly even on the daily charts. This is when you know what is happening. :slight_smile:

Just looking at the charts makes us think that we would have entered and exited one candle earlier, which is enough for us to think that a strategy is amazing, instead of just good or less.

Looks like a system anyway, I’ll give it a try for sure. Thanks for sharing!

Happy trading,
Marius

3

Greetings,

I read through your criticisms and I have to say I disagree (respectfully, of course).

OK, let’s say just for the sake of devil’s advocate:

FIRST TRADE: We enter AFTER the big candle downward. That is still a trade of around 250 - 500 pips! Don’t forget to include the wicks of the candles – this is vital.

Let’s further say that it’s only 250 pips. That is still a great amount of pips for 2 days of trading! And that is only on ONE currency pair – Imagine if you have several more trades pulling in the same number of pips.

SECOND TRADE: It could be a loss, but that’s only if you wait until the close of the candle. If you trailed your stop, you would have gained 100 - 200 pips! Again, that’s one currency pair out of many and that’s in a few days.

I think you have to include the wicks of the candles. We just have to find the best trailing stop - which is definitely the way I will trade the system. No initial S/L, but a trailing stop of around 50 - 75 pips. Experimentation will yield the best trailing stop.

Hopefully you’ll still test out the system with me because I think it will be better than the 1 HR one honestly. I’d much rather set it and forget it, for sure.

Only one way to find out about the system and that is to test it thoroughly, which I will be doing.

Thanks and have a great day!

-ForexPhantom-

4

Greetings everyone,

I’ve opened a new demo account for $1,000 to test out the daily crossover system.

I’ve just placed 3 trades – all at .01 lots.

BUY – USD/JPY @ 96.78

SELL – EUR/USD @ 1.3606

SELL – EUR/GBP @ .9360

LATER EDIT

Oh, I’ve also placed three different trailing stops: 45 points, 55 points, and 65 points. This is a sort of first-run trial to see which one produces the best result.

I’ll keep everyone posted.

Thanks,

-ForexPhantom-

5

Hi Phantom,

All 3 look like good trades. The only problem in my opinion… trailing so close as 45, 55 and 65 pips when trading the daily charts? I don’t think that’s a good idea. 100 to 200 would be more appropriate I think.
I repeat, this is just an opinion. I might be wrong… we will see. Good luck!

Happy trading!
Marius

6

You may be right…

This is what I am gonna do – I will switch the trailing stops to the following:

75
100
150

That might give us a better idea about which one is best by spreading them out more.

Good thinking and glad to see you are still following the thread!!

-ForexPhantom-

7

Greetings everyone,

Just a quick update on my trades.

Quite frankly, it is simply amazing so far! Even I am surprised.

USD/JPY == +148 pips currently
EUR/GBP == +68 pips
EUR/USD == -60 pips

As you can see, I have one negative out of three (2/3 win ratio so far).

Using the art of subtraction, that still puts me up by 156 pips for one day if I closed everything out right now!

Here is my only concern:

USD/JPY has a trailing stop of 150 that I set earlier. So far, it has only set a S/L for a gain of 10 pips. That kind of scares me since I am up by nearly 150 pips. If I lost all of that and only got 10 pips, I would be kind of mad.

Same goes for the EUR/GBP…it has not even set a S/L yet because it’s on 100.

I am all ready thinking that perhaps those figures are too high.

I am going ahead and locking in some profits on them myself and setting a closer trailing stop for right now. I don’t want to gamble with that many pips on the table.

Anyways, I’m still having faith that the EUR/USD will drop. We’ll see.

So far I’m very impressed with the system. I set the trades after glancing through my charts only once today. I found 3 possible trades, entered them, and left my forex alone until just now. To find a net gain of 156 pips in one day is amazing to me.

Let me know what you guys think.

Thanks,

-ForexPhantom-

8

Hello everyone,

Check out the GBP/CHF and the CAD/CHF. Both are showing strong bullish tendencies and warrant a LONG entry with the daily crossover system.

Given that I all ready have 3 trades going, I’m going to ignore these two for now.

Thanks,

-ForexPhantom-

9

Hello everyone,

Things have improved incredibly since my last post.

The USD/JPY trade was stopped out at +122 pips.

The EUR/GBP trade is currently +128 pips, with 100 pips locked in for profits.

The EUR/USD trade went south like I predicted and is now up +66 pips.

So, we are going on day 2 and I’m currently up +316 pips.

Let’s hope it continues,

-ForexPhantom-

10

Hey FP,

Can you share the indicator details for those of us not using MT4?

I look forward to testing this with you.

Thank you for your time!

J

11

Hi there,

Sure thing.

I attached a zip file at the beginning of the thread, but maybe that will not work with your platform.

Anyways, the system is very simple to set up.

We are only using the Daily Charts to trade.

We use only 2 moving averages to determine when to enter a trade.

Technically, there is a third indicator, the MACD, which I use solely so that I can place my moving averages below the main chart (in a sort of indicator window). I like to do this to avoid having the moving averages interfere with the actual candles.

I simply camouflage the MACD so that everything is hidden and you cannot see anything related to it. You do this by setting all the colors as your background color – so that it disappears.

Then I apply 2 moving averages to that indicator: one red and one blue.

You have to select “apply to first indicators data”.

The BLUE Moving average has a period of 1 and is linear weighted.
The RED moving average has a period of 4 and is linear weighted.

I use a dotted line for the BLUE MA, and a solid thin line for the RED MA.

Now simply enter as per the rules at the beginning of the thread – during a crossover between the MA’s (one for long and one for short).

We are currently experimenting with trailing stops to find which one is the most effective. This will be a longer process to determine the best trailing stop.

Trailing stops are beautiful because they allow us to “set it and forget it”.

Yesterday, I simply glanced at the charts around lunch time. I placed 3 trades, set my trailing stop, and went about my day as normal.

I checked all the trades about 14 hours later. 2 were in profit, 1 was not.

Now, all of my trades are in profit! I’ll post the statistics next, but it’s very good so far.

Take care,

-ForexPhantom-

12

Hello everyone,

Some current statistics:

STATS

Starting: 1,000
Realized Balance: 1,016.55
Equity: 1,042.31
Number of trades closed: 2
Number pending: 1
Realized Pips: +163
Pending Pips: +143
Lot Size: .01
System Started on March 23, 2009

Thanks,

-ForexPhantom-

13

hi FP,

Thanks for sharing :slight_smile:

Refer to your Long and Short criteria on Post #1, can we enter the trade after the crossing or do we need to enter right at the candle when the crossing take place.

Coz I can’t really look at the chart all the time?

Currently I am looking at the charts and EG & EU already crossed 2 candle ago… can I still short?

thanks

14

Hi there,

Good question, but also a really difficult one to answer.

We never know how long a trend will continue. The good thing about trading the daily charts is that even if we catch just one candle in our favor, that can translate into 100+ pips or more.

My recommendation would be to catch the cross as early as possible.

You want to see them just barely touching at first, then enter as soon as you can see the cross (even if it’s very faint).

At this point, I would recommend staying away from EG (I entered that trade 166 pips ago).

The EU seems like an OK entry right now. I just hit my trailing stop/loss on it (I placed that trade yesterday). If you look at the candles, they haven’t had a big down trend yet. But there is no guarantee they will, either. Enter at your own risk.

The bottom line is that earliest detection is always best. I just happened to catch 3 good trades yesterday and today I am up over +300 pips.

I hate glancing at the charts constantly, too. That’s why I like trading the daily charts.

I would recommend glancing at the charts once in the morning. Write down possible trades. Guesstimate when a cross might occur: Is it really close (maybe an hour away?) or is it further on down (4 hours away)? Make a note of it and check the charts again at that time.

That will help you avoid some of the unnecessary chart staring. And the Daily Charts are slow movers, so it’s possible to do this.

Hope this helps somewhat. I’m no expert by any means on this stuff. But I’m here to learn and offer what little help I can give.

Thanks,

-ForexPhantom-

15

:)Hi Phantom,

Thanks for sharing your trading strategy with us.

Do you wait for a daily candle to close once the moving average crossover has occurred? Or do you make your trade the moment the crossover occurs?

Bob in Wisconsin

16

Hi FP,

Thanks :slight_smile:

Will test out the system and congrat on your winning trade :stuck_out_tongue:

17

I enter immediately on the cross.

PS – I remember you from the other thread. Glad you’ve joined this one!

Thanks,

-ForexPhantom-

18

You’re welcome. I hope it can make us all lots of money someday.

I am still demo testing the system. I plan on opening a live account in several months (most likely August). By that time, I want my strategy foolproof and ready to go.

Hopefully this will be “the one”.

-ForexPhantom-

19

I remember you from the other thread. Glad you’ve joined this one!

heh , there are many just watching (boths threads ) but just read , without writing.
trust me ! (i know one of them lol )

20

Hello,

I encourage everyone to join in on the fun lol.

But that’s cool if they prefer to remain quiet. I do that myself sometimes.

It’s cool either way.

Take care,

-ForexPhantom-